1. RISK MANAGEMENT MARKET & SOCIAL RESEARCH

2. Overview
Risk Management is about maximising the realisation of opportunities – enabling the buyer to make informed decisions
The Risk comes from uncertainty in the market place such as; financial markets, legal liabilities, credit risks, project failures, natural disasters, deliberate adversarial strategies from competitors
The Management typically includes knowing and understanding risk and therefore acting accordingly such as; transferring risk to another party, avoiding the risk, reducing the negative effect or knowingly accepting some or all of the consequences of risk
Management relies on being fully informed and therefore making informed decisions

3. Risk Management is a process
The Management of Risk
Risk Management is a process
Risk Management relies on informed decision making as part of the process
The more informed you are – the less the risk
All human activity has some form of risk – decision making is just one of them
Risk is about possibilities not certainties. The more informed the decision, the more certain the decision becomes
Market and social research is an informing tool moving decisions further up the certainty scale

4. Step 1 – Identification of Risk
What is known needs to be known
What could go wrong uncertainty to certainty
Assumptions V Fact think we know to definitely know
Buyers of market and social research are looking to identify and mitigate risks relating to decision making – to make informed decisions

5. Step 1: Identification of Risk
There are many sources of risk to consider. Typically they fit into the following categories:
Economic risk – value of $AUD, world economy
Political events – change of government
Technology implications – changes in technology
Regulatory – changing Acts and Regulations
Resources – investment of resources
In order to quantify these risks, buyers need reliable data to make informed decisions

6. Step 2: Risk Quantification / Risk Assessment
In order to quantity or assess a risk, the risk needs to be analysed.
To quantify risk, consider the following:

7. Step 2: Risk Quantification / Risk Assessment
Once the risk cause is determined – give the risk a measure of significance
Probability /
Likelihood
of the risk
impacting
on the business
decision making

8. Step 2: Risk Quantification / Risk Assessment
Impact /
Consequences of
the risk occurring.
How bad could
it be?

9. Step 2: Risk Quantification / Risk Assessment

10. Step 3: Risk Treatment (Control)
Risk treatment is the final step of risk mitigation or informed decision making
If you need market and/or social research to make an informed decision or develop a strategic direction - the following risk mitigation options may apply
Elimination of Risk – eliminate the unknown
Risk avoidance – not making a decision
Transfer Risk - limitations
Retain or Accept the Risk – knowledge of what is being accepted

11. Step 3: Risk Treatment (Control)
The scope of a market or social research project must provide sufficient and appropriate reliable data to enable the company to move closer to or achieve a decision / strategy
Unknown Known
Unsure Sure
Unwanted Wanted

12. Step 3: Risk Treatment (Control)
Risk management processes can be used by a buyer to:
Determine the nature and context of the actual research required to give the information needed
Aid in selecting the research provider
Both the scope of the research process and the capability and reliability of the research provider need to be ‘risk assessed’ as part of the overall risk approach

13. Step 3: Risk Treatment (Control)
Risk factors in selecting a research provider should consider:
Assured Quality – Capability and assurance of a quality outcome
KPI: ISO / 26362
Fitness for Purpose – Scope of the project is matched to the best fit of the organisation
KPI: Project management and Panel Management or BOTH
Project Knowledge Management – Knowledge and capability of project management team
KPI: QPMR
Project Due Diligence – Secure and robust due diligence in business strategy
KPI: AMSRS / AMSRO
Privacy Principles / Code of Professional behaviour

14. Case Study State support and some State funding
A Federal Government Agency is developing a 3 year strategy document dependent on:
State support and some State funding
Support in principle from sporting associations
Support by environmentalists
What are the risks associated with this strategy?
State funding – political affiliations (Federal Government / State Parties)
Support from sporting groups at a cost
Unlikely support from environmentalists

15. Case Study
What is the most significant risk? Are all these factors a risk?
Is enough known about State Government views sufficient to make an informed decision?
What is known about sporting groups?
What is known of the views and likely acceptance by environmental groups and particular lobbyists?
Quantify the Risk
By determining the level of known risk (calculation) the need for further data
(market or social research) can be determined.
The scope and objectives of the brief can be quantified, providing the necessary
informed decision making process.

16. Select the Research Provider
Do I need quality assurance standards to ensure a quality outcome? If so, what quality assurance standards do I need?
ISO – Project Management
ISO – Panel Management
What level of due diligence is needed for the project?
QPMR – Knowledge Management
AMSRS / AMSRO – Strategic Risk Management

17. Summary
Risk Management is a process of determining how to move the unknown to the known. This applies to all facets of business. Market and social research provides an enabling tool to mitigate risks associated with good business decision making practices.

18. Comments & Questions